Cash remittances from Filipinos working overseas rose 2.9 percent year-on-year in January 2025, sustaining their contribution to the national economy.
The Bangko Sentral ng Pilipinas said cash remittances coursed through banks amounted to $2.92 billion in the first month of the year, up from $2.84 billion posted in January 2024.
“The growth in cash remittances from the Saudi Arabia, United States, Singapore and the United Arab Emirates mainly contributed to the increase in remittances in January 2025,” the BSP said.
It said that in terms of country sources, the US accounted for the largest share of overall cash remittances in January 2025, followed by Singapore and Saudi Arabia.
The BSP noted, however, some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US.
Remittances coursed through money couriers could not be disaggregated by actual country source and are lodged under the country where the main offices are located, which, in many cases, is als0o in the US.
“Therefore, the US would appear to be the main source of OF remittances because banks attribute the origin of funds to the most immediate source. The countries are listed in order of their share of cash remittances, i.e., from highest to lowest,” the BSP said.
Personal remittances, which include cash remittances and other items sent outside the banking channels, also increased 2.9 percent, reaching $3.24 billion in January 2025 from $3.15 billion a year ago.
“The increase was observed in remittances from both land-based and sea-based workers,” the BSP said.
Personal remittances reached a record $38.34 billion in 2024, up by 3 percent from $37.21 billion recorded in 2023.
The full-year remittances represented 8.3 percent and 7.4 percent of the gross domestic product (GDP) and gross national income (GNI), respectively.